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Anglo American reports 6 percent rise in second quarter output

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Anglo American reports 6 percent rise in second quarter output

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LONDON (Reuters) - Major diversified miner Anglo American <AAL.L> on Thursday reported a 6 percent increase in output in the second quarter compared with a year earlier, saying the rise was driven by copper and coking coal.

The figures excluded Minas-Rio in Brazil, where a leak has forced the closure of the iron ore project until late this year.

Copper production rose 12 percent, driven by higher grades, while coking coal increased 33 percent. Thermal coal output slipped one percent compared with a year earlier, Anglo American said.

Anglo American, along with the other major miners, has recovered strongly from the commodities slump of 2015-16.

One setback was the leak at the Minas-Rio project in Brazil, which forced the suspension of operations from March.

On Thursday, Anglo American said pipeline inspection work was on track, and a 4 kilometre section of the pipeline where the leak took place was being replaced as a precaution.

It repeated an earlier forecast that production should restart in the final quarter of the year, subject to required clearance from the Brazilian authorities.

It also reiterated that the full-year impact on earnings before interest, tax, depreciation and amortisation (EBITDA) of the disruption would be between $300 and $400 million.

Full-year production guidance for Minas-Rio remains at 3 million tonnes, reflecting output delivered to date in 2018.

(Reporting by Barbara Lewis; editing by Jason Neely and Jan Harvey)

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